The UK Government first announced a ban on petrol and diesel cars in 2017, with the target shifting since then and as it stands currently, the sale of new petrol and vehicles will be banned from 2030. Since the initial announcement in 2017, electric vehicles have become increasingly popular in the UK and as a result, public and private charging facilities need to be greatly expanded to ensure there is enough infrastructure to encourage the purchase of EV’s and allow the deadlines to be met. When considering the installation of EV charging sites, there are a number of factors to take into account.
Heads of Terms
The heads of terms should be drafted in a manner that clearly captures the key commercial points which includes how power is brought to site and works needed to make a site viable. The heads of terms should cover the contractual term and any renewal or extension rights; whether either party should have a break clause and on what conditions; the basis of rent (e.g., fixed rent, turnover or revenue share, or a hybrid structure); responsibility for installation, maintenance, utility or grid connection works; allocation of service charges and utilities; any exclusive rights or restrictions on competing chargers nearby; rights to access services and to install service media; and decommissioning and reinstatement obligations.
Form of Occupation
Leases are the most common form of documentation to deal with occupation and the parties obligations to each other, giving the charging operator exclusive possession and long-term security – often essential where the operator is making significant capital investment in equipment and infrastructure.
An agreement with an operator for the roll out of charging points on a site is another option.
When leasing, operators typically seek to remain contracted into the Landlord and Tenant Act 1954, but this is a negotiation point, and tenancies both in and outside the 1954 Act are possible. As an operator, you’ll be granted rights to install, connect, operate, and maintain the charging points.
Leases may include rights for a landlord to redevelop and bring the lease to and end early or rights to relocate equipment or temporarily suspend site use. Operators will want to recover their costs, so they’re unlikely to agree to relocation without expecting reimbursement for capital expenditure. Additionally, operators may want to include compensation provisions for any operational downtime. Therefore, the landlord should carefully consider the location of the spaces it intends to make available and manage the risk of potential redevelopment causing temporary suspension issues later.
Practical Considerations
It is imperative to consider the infrastructure of the station itself. Operators must determine whether the installation will employ an AC (alternating current) or DC (direct current) charging style, which significantly impacts power capacity requirements, along with profitability and hile both currents are satisfactory, DC would be more suitable to allow for faster charging. Prior to construction, the operator or developer must submit an application for a grid connection to the distribution network operator. This document outlines the available capacity, estimated reinforcement costs, and technical requirements. It is crucial to clearly define the responsibilities of each party involved in obtaining, funding, paying DNO fees, and managing the timeline for DNO design approvals. These approvals can substantially influence both project feasibility and timing. Wayleaves or easements will be necessary for cable routes, substations, or other electrical infrastructure. Where the grid connection requires crossing adjacent land, the operator or developer must also obtain third-party consents, and this can lead to increased cost and time.
Landlords should exercise caution to avoid indefinite obligations to meet escalating power demands. Instead, they should consider capping their commitments or agreeing to cost-sharing mechanisms when additional capacity is required.
Although many EV chargers now benefit from permitted development rights, not all installations qualify — particularly larger “charging hubs” with canopies, lighting, and battery storage. Considerations should include whether full planning permission is required; if the use changes the planning designation of the land; whether any restrictive covenants or title conditions prevent the use for charging or for retail/ancillary sales at the site. Where the operator is responsible for planning, the landowner will want to ensure the planning risk sits with them, and that any consents are obtained before occupation or construction begins.
Traditional fixed-rent leases are frequently being replaced with hybrid or turnover-based rents that are linked to electricity sales or charging sessions. This necessitates the consideration of audit and verification rights for turnover data, as well as confidentiality and data protection measures, particularly in the context of driver data collection.
With technology evolving rapidly, it’s vital to plan for end-of-life and exit scenarios.
Key legal protections include:
- Clear decommissioning obligations requiring removal of equipment and reinstatement of the site
- Yield-up provisions to ensure the land is returned in good condition
- Security (such as a bond or parent guarantee) to cover reinstatement costs if the operator ceases trading
Failure to address this can leave landowners with stranded infrastructure or contaminated ground.
Given the rapid pace of technological change and the capital-intensive nature of installing EV charging infrastructure, end-of-term planning is crucial in any charging site agreement. Legal documents should address what happens when the arrangement ends, whether due to expiry, termination, or operator insolvency. Failure to do so could leave landowners with stranded assets, contaminated ground, or ongoing liabilities.
It may also be worth considering variation or renegotiation clauses. The operator should have the right to upgrade or replace equipment, such as higher-output chargers. The contract should also allow for the integration of battery storage or grid services, like vehicle-to-grid. Upon major upgrades, rent, service charges, or cost-sharing models may need to be revisit. The landlord should cap the operator’s rights so that major changes require landlord consent, but in a structured process.
EV charging sites are reshaping the property landscape — but they sit at the intersection of real estate law, energy regulation, and commercial technology.
For landowners and developers, the key legal challenge is to structure occupation and risk in a way that safeguards the asset while remaining commercially attractive to operators investing in the network.
By addressing tenure, grid rights, planning, and long-term risk allocation early, stakeholders can avoid costly disputes and position their sites at the forefront of the transition to net zero transport.
